Know Labs(US:KNW)2024-05-15 20:17Financial Performance - The net loss for the three months ended March 31, 2024, was $5.40 million, compared to a net loss of $4.93 million for the same period in 2023, reflecting an increase in losses of approximately 9%[13]. - The company reported a net loss of $3.446 million for the year ending December 31, 2023[15]. - The company reported a net loss of $8,844,288 for the six months ended March 31, 2024, compared to a net loss of $8,753,061 for the same period in 2023[18]. - The company reported a net loss of $5,496,273 for the three months ended March 31, 2024, compared to a net loss of $4,930,202 for the same period in 2023, reflecting an increase in loss of approximately 11.4%[11]. - The company anticipates recording losses from operations for the foreseeable future and believes it has enough cash to operate until October 31, 2024[180]. Assets and Liabilities - As of March 31, 2024, total assets decreased to $4.94 million from $8.27 million as of September 30, 2023, representing a decline of approximately 40%[9]. - Current liabilities increased to $5.06 million from $4.52 million, marking an increase of about 12%[9]. - The accumulated deficit increased to $130.85 million as of March 31, 2024, from $121.84 million as of September 30, 2023, an increase of approximately 7%[9]. - The total stockholders' deficit equity decreased to $(1.75) million as of March 31, 2024, from $3.74 million as of September 30, 2023[9]. - Total liabilities increased to $6,692,122 as of March 31, 2024, compared to $4,521,985 as of September 30, 2023, marking an increase of approximately 48.0%[9]. Revenue and Expenses - Research and development expenses for the three months ended March 31, 2024, were $2.18 million, down from $2.56 million in the same period of 2023, a decrease of about 15%[13]. - Selling, general and administrative expenses rose to $2.55 million for the three months ended March 31, 2024, compared to $2.24 million in the prior year, an increase of approximately 14%[13]. - The total operating expenses for the three months ended March 31, 2024, were $4.73 million, slightly down from $4.81 million in the same period of 2023, a decrease of about 2%[13]. - The total cash used in operating activities was $7,047,684, compared to $6,340,649 in the prior year[18]. - Total current assets decreased to $4,709,690 as of March 31, 2024, down from $8,023,716 as of September 30, 2023, representing a decline of approximately 41.0%[9]. Stock and Equity - The weighted average shares of common stock outstanding increased to 81,766,128 for the three months ended March 31, 2024, compared to 48,207,937 in the same period of 2023[13]. - The company has authorized 205,000,000 shares of capital stock, including 200,000,000 shares of voting common stock[22]. - The company issued common stock worth $8.830 million, demonstrating ongoing capital raising efforts[15]. - The company issued 453,492 shares of common stock to six directors at $0.434 per share, totaling $196,816 in expenses for the quarter ended March 31, 2024[79]. - The company has 82,512,166 shares of common stock issued and outstanding as of March 31, 2024[78]. Research and Development - The company is focused on developing proprietary sensor technology utilizing radio and microwave spectroscopy[23]. - The company launched a Generation 2 working prototype device for non-invasive blood glucose monitoring during the three months ended March 31, 2024, which is ready for commercialization pending FDA clearance[24]. - Research and development expenses for the six months ended March 31, 2024, were approximately $3.66 million, compared to $4.31 million for the same period in 2023[4]. - The company has gathered billions of data points to refine its AI and ML algorithms for improved accuracy in glucose monitoring[120]. - Know Labs aims to expand its sensor technology to other non-invasive medical diagnostic applications following FDA clearance of the glucose monitor[114]. Market and Competitive Landscape - The global population suffering from diabetes is estimated at 579 million, projected to reach 643 million by 2030 and 784 million by 2040[2]. - Leading continuous glucose monitor (CGM) providers hold 100% market share but have penetrated less than 1% of the global addressable market[3]. - The competitive landscape includes major players like Dexcom, Abbott, and Medtronic, which have significantly greater financial resources and market recognition[10]. - Know Labs has received strong interest in its technology for early diabetes detection, particularly in high-incidence populations[133]. - The company is expanding its market presence in Asia, targeting a 15% market share by the end of the fiscal year[5].